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WCE close: Canola up with CBOT soy

Winnipeg (Resource News International) — Winnipeg Commodity Exchange (WCE) grain and
oilseed futures closed Monday’s session mixed with canola rallying and setting fresh
contract highs in the wake of the firm tone in Chicago Board of Trade soy complex
futures, brokers said.

Evening up was noted ahead of Tuesday’s Statistics Canada July 31 grain stocks
report and Wednesday’s US Department of Agriculture supply-demand reports.

Canola volumes were moderate with intermonth spreading by commercials
augmenting the volumes.

The total canola volume was estimated at 8,321 contracts, down from Friday’s

10,288 as an estimated 2,856 contracts were involved in the spread trade. An estimated
500 November canola puts traded on Monday.

Canola prices rallied from the opening in the wake of gains in CBOT soy complex
futures and the higher European rapeseed market, traders said.

Talk of fresh exports also gave support, although export sources were unable to
confirm any activity. Bullish technical signals contributed to the gains with disciplined
farmer pricing on a scale up also holding the market firm.

Routine exporter buying was noted with crushers also buyers and commodity fund
buying evident. Funds were estimated to have purchased about 500-1,000 November
contracts. The selling was mainly commercial with scale-up farmer pricing accounting for
most of the offerings.

Western barley posted losses as the weak tone in CBOT corn, slow end-user
demand and steady hedge selling weighed on the market, analysts said. Much of the
activity was October/December spreading with the total barley volume estimated at 775 contracts,
up from 330 contracts on Friday.

Feed wheat rallied to fresh contract highs in the wake of the gains in US wheat

futures and amid a lack of farmer selling, traders said. Trading volumes were very light
as an estimated 39 contracts changed hands, down from Friday’s 538 contracts.

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